2021-03-31-accounts

Project Mala Charitable Trust

(Charity Registration Number 801953)

Trustees' Annual Report & Financial Statements for the year ended

31st March 2021

Charity accounts preparation & independent examination service

Project Mala Charitable Trust

(Charity Registration Number 801953)

Contents
Index	Page
Annual Report of the Trustees	1
Independent Examiner's Report	5
Statement of Financial Activities	6
Balance Sheet	7
Statement of Cashflows	8
Notes to the Accounts	9

For the year ended:

Trustees' Annual Report

31/03/21

Reference and administration details

Charity name Project Mala Charitable Trust Other names the charity is known by None Registered charity number (if any) 801953 Charity's principal address Model Farm The Green, Upper Poppleton York, YO26 6DP

Names of the charity trustees who manage the charity

Name of person (or body) Dates acted if not for Trustee Name Office (if any) entitled to appoint trustee whole year (if any) Robin Garland Chair David Hopton Patrick Scott Anne Gilmour Karen Brook Resigned 15 July 2020

Names of the trustees for the charity, if any

Names of the trustees for the charity, if any	Names of the trustees for the charity, if any	Names of the trustees for the charity, if any
Name			Dates acted if not for wholeyear
None
Reference and administration details (continued)
Names and addresses of advisers
Type of adviser	Name	Address
Investment Advisor Hargreaves Lansdown Independent Examiner Karen Wood ACMA, Hiscox Building, Peasholme Green, York, YO1 7PR
Structure, governance and management
Description of the charity's trusts How the charity is constituted An unincorporated charity Trustee selection methods New trustees are appointed as needs arise and to ensure that an appropriate range of skills and experience is brought to the management of the trust. Appointment is by existing trustees. Governing document: Trust Deed dated 7 August 1989

Additional governance issues

The charity is administered by a board of trustees supported by volunteers plus remunerated administrative support as required.

1

Objectives and activities

Summary of the objects of the charity set out in its governing document

The principal objective of the charity is the advancement of education and the relief of poverty amongst children in India.

The trust supports The Children Emancipation Society which operates Project Mala schools in India. Currently there are 5 pre-schools for girls, 6 primary, 3 middle, 2 secondary schools and 1 intermediate college in the state of Uttar Pradesh, India, supporting over 1,350 underprivileged children in full time education. The education covers up to 10 years and grades 1-12 of the national curriculum. Most of these children could have grown up illiterate without the benefit of our work. Nutrition and health care are provided for all pupils.

Summary of the main activities undertaken for the public benefit in relation to these objects

The main beneficiaries at this stage are children in the Uttar Pradesh state of Northern India who receive education, nutrition and health care through funding provided by the trust.

The trustees consider that they have complied with their duties to have due regard to the public benefit guidance published by the Charity Commission.

Achievements and performance

Summary of the main achievements of the charity during the year

The year under review has been a strange one, as we have been unable to have face-to-face meetings because of the Covid 19 lockdown. Also, Karen Brook resigned due to family problems. Karen was part of our teaching advisory team and is a sad loss for us. She was instrumental in introducing the phonics programme in our primary schools.

In India, our schools have been closed for much of the year Whilst we still gave our children work to do at home, it was not as good as being in school. At the end of March we were starting to feel that things were gradually returning to normal and the senior schools started back in attendance. Then the second wave started in India and the virus went around like a forest fire.

The enrolled numbers of children at the end of the year were:

	Pre	**Primary **	Middle	**Secondary **	**College **	Total
Boys	0	360	251	84	46	741
Girls	120	330	172	44	31	697
Total	120	690	423	128	**77 **	1,438

The main positive event this year has been the introduction of smart boards. We started to use them for a short time and found that they were making a huge difference and are very popular with the teachers.

In the early part of the year we enjoyed seeing so many of our children making decisions on their future. Some chose academia and continued to further education in university and others deciding to take a more practical career based course.

We are looking forward to India getting control of the virus so our children can get back to school with us.

2

Financial review

Review of the charity’s financial position at the end of the period

A surplus of £6,886 before gains from exchange has been made this year, increasing reserves to £120,704. In the balance sheet investment assets have increased by £6,722 from £43,444 to £50,166, current assets have increased by £4,199 from £66,889 to £71,088 and current liabilities have decreased by £242 from £792 to £550.

Amount of reserves held

£120,704 of unrestricted reserve

Reserves policy

The trustees adopt the advice of the Charity Commission in seeking to maintain an adequate level of unrestricted funds to support ongoing work.

Funds materially in deficit

None

Funds held as a custodian trustee

The schools in India are operated by The Children Emancipation Society which is a society registered in India. The society has it's own trustees. All schools operate under the 'Project Mala' name. Project Mala supplies approximately 80% of the costs incurred in India, the balance being raised within the country. Efforts continue to be made to increase the domestic funding so that in the longer term there is less reliance on grants from overseas.

Trustees' responsibilities in relation to the financial statements

Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ascertain the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

3

Declaration

The trustees declare that they have approved the trustees' report above

Signed on behalf of the charity's trustees

Signature

Name

Position (e.g. Chair etc)

Date

4

Independent examiner’s report to the trustees of Project Mala Charitable Trust

I report on the accounts of: Project Mala Charitable Trust for the year ended: 31st March 2021 which are set out on pages 6 to 15.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

• 1 accounting records were not kept in respect of the Trust as required by section 130 of the Act; or

• 2 the accounts do not accord with those records

• 3 the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Karen Wood (ACMA)

3/9/2021

Date:

Outsource independent examination service The Hiscox Building Peasholme Green York YO1 7PR

5

Project Mala Charitable Trust

(Charity Registration Number 801953)

Statement of Financial Activities for the year ended:

31st March 2021

Note Income and endowments from: Donations and legacies 3.1 Charitable activities 3.2 Investments 3.3 Total income 3 Expenditure on: Raising funds 4.1 Charitable activities 4.2 Other expenses 4.3 Total expenditure 4 Net incoming/ (outgoing)resources before other recognised gains/ (losses) Transfers between funds 10 Gains/(losses) on investment assets 6 Net movement in funds Total funds brought forward Total funds carried forward	Note Income and endowments from: Donations and legacies 3.1 Charitable activities 3.2 Investments 3.3 Total income 3 Expenditure on: Raising funds 4.1 Charitable activities 4.2 Other expenses 4.3 Total expenditure 4 Net incoming/ (outgoing)resources before other recognised gains/ (losses) Transfers between funds 10 Gains/(losses) on investment assets 6 Net movement in funds Total funds brought forward Total funds carried forward	Unrestricted Restricted Total Total funds funds 2021 2020 £ £ £ £ 205,702 14,825 220,527 203,946 725 - 725 10,250 2,462 - 2,462 2,971
		208,889 14,825 223,714 217,167
		2,887 - 2,887 15,462 191,021 21,525 212,546 222,837 1,395 - 1,395
		195,303 21,525 216,828 238,299
		13,586 (6,700) 6,886 (21,132)
		- - - - 4,277 - 4,277 (11,245)
		17,863 (6,700) 11,163 (32,377)
		102,841 6,700 109,541 141,918
		120,704 - 120,704 109,541

6

Project Mala Charitable Trust

(Charity Registration Number 801953)

Balance Sheet as at:

31st March 2021

Note Fixed Assets Investments 6 Current Assets Cash at bank and in hand 7 Debtors & prepayments 8 Current Liabilities: Amounts falling due within one year Creditors and accruals 9 Funds of the Charity 10 Unrestricted Funds (General) Restricted Funds Total Funds Carried Forward Net Assets/(Liabilities) Total Fixed Assets Net Current Assets/(Liabilities) Total Current Assets	2021 £ 50,166 50,166 64,990 6,098 71,088 (550) 70,538 120,704 120,704 - 120,704	2020 £ 43,444
		43,444
		60,398 6,491
		66,889
		(792)
		66,097
		109,541
		102,841 6,700
		109,541

The financial statements were approved by the trustees and signed on their behalf by:

Signature

Name

Position (e.g. Chair etc)

7

Project Mala Charitable Trust

Statement of Cash Flows for the year ended:

31st March 2021

Note Cash flows from operating activities Net income/(expenditure) for the year (Gains)/losses on investments Working capital changes (Increase)/decrease in debtors Increase/(decrease) in creditors Cash flows used in investing activities Purchase of investments 6 Sale of investments 6 Cash from investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at 1 April 2020 Cash and cash equivalents at 31 March 2021 Cash at bank at 31 March 2021 7 Cash equivalents at 31 March 2021 6 Net cash provided by/(used in) operating activities	Total 2021 £ 11,163 (4,277)	Total 2020 £ (32,377 ) 11,245
	6,886 393 (242 )	(21,132 ) (644 ) 18
	7,037	(21,758)
	(7,247 ) 4,742	(5,444) 0
	(2,505)	(5,444)
	4,532 60,566	(27,202 ) 87,768
	65,098	60,566
	64,990 108	60,398 168
	65,098	60,566

8

Project Mala Charitable Trust

Notes to the accounts for the year ended:

31st March 2021

1.1 Basis of accounting

The financial statements are prepared under the historical cost convention and the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP (FRS 102)).

1.2 Change of basis of accounting

There has been no change to the accounting policies (valuation rules and methods of accounting) since last year.

1.3 Change to previous accounts

No changes have been made to accounts for previous years.

2 Accounting policies

2.1 Income

Recognition of income

Income is recognised in the Statement of Financial Activities (SoFA) when:

• the charity becomes entitled to the resources;

• receipt is probable; and

• the monetary value can be measured with sufficient reliability.

Incoming resources with related expenditure

Where incoming resources have related expenditure, the incoming resources and related expenditure are reported gross in the SoFA.

Grants and donations

Grants and donations are only included in the SoFA when the charity has evidence of entitlement to the resources and receipt is probable.

Investment income

This is included in the accounts when receivable.

2.2 Expenditure and Liabilities

Expenditure

Raising funds

Cost of raising funds comprises those costs associated with attracting voluntary income.

Charitable activities

Charitable activities expenditure comprises those costs incurred by the charity in the delivery of its activities and services. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Liability recognition

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.

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2.3 Assets

Tangible fixed assets for use by the charity

These are capitalised if they can be used for more than one year and cost at least £5,000. They are valued at cost or, if gifted, at the value to the charity on receipt, less depreciation. Assets are depreciated at 25% per annum on a straight line basis.

Foreign currencies

Assets and liabilities in foreign currencies at the year end have been translated into UK Sterling at the rate of exchange applicable at the date of the Balance Sheet. Transactions in foreign currencies during the financial year have been translated into sterling using the exchange rate on the day of the transaction. Exchange rate differences are taken into account in arriving at the operating result.

The total value of assets and liabilities held in foreign currencies at the year-end was £35,346 ($37,369 (US Dollars), $14,943 (AUS Dollars) calculated using applicable exchanges as of 31st March 2021 ($0.7225 to £1, $0.55109 to £1).

2.4 Fund accounting

Unrestricted funds are funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

Restricted funds are funds which can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor.

10

Project Mala Charitable Trust

(Charity Registration Number 801953)

Notes to the accounts for the year ended:

3 Income and endowments

3 Income and endowments
3.1 3.2 3.3 Donations and legacies Donations and gifts Gift aid Legacies Charitable activities Individual child sponsorship Grants returned Carpet sales Total income Investments Bank interest Dividends	Unrestricted funds £ 60,619 120,789 24,294 -	Restricted funds £ 13,800 - 1,025 -	Total 2021 £ 74,419 120,789 25,319 - 220,527 - 725 725 17 2,445 2,462 223,714	Unrestricted funds £ 51,905 117,864 24,770 5,007	Restricted funds £ 4,400 - - -	Total 2020 £ 56,305 117,864 24,770 5,007
	205,702	14,825		199,546	4,400	203,946
	- 725	-		-	10,250	- 10,250
	725	-		-	10,250	10,250
	17 2,445	- -		- 2,971	- -	- 2,971
	2,462	-		2,971	-	2,971
	208,889	14,825		202,517	14,650	217,167

11

4 Expenditure

4 Expenditure
4.1 4.2 4.3 Loss on exchange rates Bank transfer fees Total expenditure Other expenditure Raising funds Charitable activities Independent examination Direct school funding costs Travel & subsistance Finance & administration costs Communications & IT General office Incurred seeking donations & sponsorship Insurance	Unrestricted funds £ 2,887 164,750 18 2,784 2,441 442 (69 ) 20,105 550 191,021 1,395 195,303	Restricted funds £ - 21,525 - - - - - - -	Total 2021 £ 2,887 186,275 18 2,784 2,441 442 (69 ) 20,105 550 212,546 1,395 216,828	Unrestricted funds 15,462 163,771 - 3,311 1,560 - 376 15,458 792 185,268 - 200,730	Restricted funds - 37,569 - - - - - - - 37,569 - 37,569	Total 2020 £ 15,462
						201,340 - 3,311 1,560 - 376 15,458 792
		21,525				222,837
		-				-
		21,525				238,299

12

5 Expenses & fees

No trustees received a remuneration for services rendered during the year, nor were any trustees' out of pocket expenses reimbursed.

5.1 Fees for examination of the accounts

5.1 Fees for examination of the accounts Independent Examiner's fees	2021 £	2020 £
	550	792

6 Investment assets

Investments at fair value Comprising: Cash at cost Add/(deduct): net gain/(loss) on revaluation Sale of disposals Purchase of additions Dividends Carrying (fair) value at end of year Carrying (fair) value at beginning of year	Cash & cash equivalents At cost £ 168 4,742 (7,247) 2,445 -	Listed investments Total At fair value £ £ 43,276 43,444 7,247 11,989 (4,742) (11,989) - 2,445 4,277 4,277	Listed investments Total At fair value £ £ 43,276 43,444 7,247 11,989 (4,742) (11,989) - 2,445 4,277 4,277
	108	50,058	50,166
			108 50,058
			50,166

7 Cash at bank and in hand

Coop PayPal AUS dollars RBS current RBS deposit US dollars	£ 12,618 15,317 1,341 368 27,111 8,235 Unrestricted funds	£ - - - - Restricted funds	Total Total 2021 2020 £ £ 12,618 9,399 15,317 25,303 1,341 2,788 368 654 27,111 18,406 8,235 3,848
	64,990	-	64,990 60,398

8 Debtors and prepayments

Debtors and prepayments Bank charges to be refunded Gift aid	2021 £ 5,988 110	2020 £ 6,491 -
	6,098	6,491

13

9 Creditors and accruals Accruals & deferred income Analysis of creditors falling due within one year	2021 £ 550	2020 £ 792 792
	550

10 Movement of funds

10.1 Movement of major funds

2021 Fund name Unrestricted funds Restricted Funds Turkahan Building fund Patehra building fund Nutrition Smartboards Total Funds 2020 Unrestricted Funds Restricted Funds Turkahan Building fund Patehra building fund Nutrition Total Funds Fund Name	£ £ 102,841 208,889 Balance b/fwd Incoming resources	£ 195,303 Outgoing resources	£ - - - - - - Transfers	£ £ 4,277 120,704 Balance c/fwd Gain/loss on invest
	4,200 - 2,500 - - 14,825 - 11,045	4,200 2,500 3,780 11,045		- - - - - 11,045 - -
	6,700 14,825	21,525		- -
			- £ - - - - Transfers
	109,541 223,714	216,828		4,277 120,704
	£ £ 112,299 202,517 Incoming resources Balance b/fwd	£ 200,730 Outgoing resources		Balance c/fwd £ £ (11,245) 102,841 Gain/loss on invest
	- 4,200 29,619 10,450 - -	- 37,569 -		- 4,200 2,500 -
	29,619 14,650	37,569		- 6,700
	141,918 217,167	238,299		(11,245) 109,541

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10.2 Details of Funds Held

Unrestricted Funds (General)

The general fund is unrestricted and available for general purposes.

Restricted Funds

The restricted funds are only available for the purposes specified for each fund, which are:

Turkahan Building fund

A fund to build three more classrooms which will enable children to have full days schooling rather than the current shift system

Patehra building fund

A fund to extend the building with three rooms for a secondary school which will enable more children to stay in the education system.

Nutrition

A fund to enable the improvement in physical improvement through healthcare and nutrition.

Smartboards

Donations given and matched by The Big Give Christmas Challenge for smartboards in schools.

11 Net assets between funds

Fixed assets Current assets Current liabilities Balance at 31st March 2021 Balance at 31st March 2020 Fixed assets Current assets	Unrestricted Funds £ 50,166 71,088 (550)	Restricted Funds £ - - - - Restricted Funds £ 6,700 - 6,700	Total 2021 £ 50,166 71,088 (550)
	120,704		120,704
	Unrestricted Funds £ 43,444 60,189 (792)		Total 2020 £ 43,444 66,889 792 -
	102,841		109,541

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